Iran Through the Looking Glass: History, Reform, and Revolution

Introduction: The End of an Era

On January 16, 1979, the Shah of Iran left the country, marking the end of his 38-year rule.
Most Iranians saw the Shah as corrupt and a puppet of the United States.
His departure began a debate about Iran’s future, with differing visions including a parliamentary system modeled on the West, an Islamic government, and a socialist future.
Ayatollah Mahmoud Taleqani emphasized the need for unity and the fight for freedom.
The Iranian Revolution became a scene of ideological conflict and uncertainty.
In the 20th century, Iran experienced multiple revolutions, coups, and abdications.
Its location and oil resources made it desirable to Russia, Great Britain, and the United States.
The document explores the causes of upheaval in Iran, the events leading to the revolution, and the determination of the government's form.
It examines Iran's culture, history, the role of Islam and Persian culture, and the influence of other countries, recreating the debate among Iranians after the Shah's departure and considering Iran's changes since the Revolution and its role in international politics.

Part I: From Cyrus to Reza Shah

Iran's history and culture played an important role in the 1979 Revolution.
The beliefs and values of Iranians shaped the Revolution, originating from their understanding of their history and society.
Part I traces several thousand years of Iranian history to understand the revolution of 1979 and examines the origins of social and economic justice values that shaped Iranian political life.
It explores how Shi‘i Islam and political life in Iran became intertwined.
It also examines how an often ineffective and corrupt monarchy led to exploitation by foreign imperial powers and anger among Iranians, who wanted a better government.

Early Iran

Iran is an arid and mountainous country with a large desert plateau bordered by high mountains.
For many years, the lands of Iran were known as Persia.
The ancient Greeks named the lands for a nomadic tribe called the Parsa that moved into the region around 1000 BCE.
Tribes were based on extended family ties.
Tribal affiliations were more important than national or ethnic affiliations until the late 20th century.
Tribes settled the region, relying on agriculture and adapting to the difficult terrain and climate.
Scarcity of water forced the Parsa and other tribes to develop ways to distribute this essential resource fairly.
This desire for fair and equitable distribution led to the development of a religion that emphasized justice and fairness, and an effective government able to implement the rules that governed society.

What was Zoroastrianism?

Challenging geographical conditions contributed to the birth of Zoroastrianism.
Zoroaster, born between the 10th and 7th centuries BCE, taught about humanity and human responsibilities on the Iranian plateau.
Zoroastrianism emphasized order, social justice, improving the world, and accountability before a single God.
Zoroastrianism influenced all aspects of life in early Iran, including politics and government.

What were the contributions of the Achaemenian Empire?

The Parsa, led by Cyrus, began wars to increase security and wealth, conquering neighboring tribes.
Cyrus called himself the King of Persia and started the Achaemenian Empire, which became the largest the world had seen.
It had an absolute monarch and centralized rule; cities and towns grew.
The dynasty developed a postal system and roads that were the most extensive in the region.
Cyrus’s successor, Darius, established a legal system, taxation, and an efficient government that the Romans later used as a model.
The Achaemenian Empire ended after approximately two hundred years with Alexander the Great's invasion in 330 BCE.
Alexander ransacked Persepolis and carried away the empire’s wealth.
After 130 years of Greek rule, a nomadic tribe overthrew the Greeks.
About 220 CE, Ardeshir began to reestablish central rule and authority over the tribes, marking the beginning of the Sassanian Dynasty, which lasted until 637 CE.

What were the important developments of the Sassanian dynasty?

A primary goal of the Sassanian dynasty was to unify the empire and create political stability.
Arts, architecture, and other elements of Persian culture flourished during the Sassanian era.
Sassanian rulers emphasized establishing and maintaining social control and power.
Rigid class structures developed with the king at the top of the hierarchy, followed by priests and aristocratic landholders.
The Sassanians prohibited intermarriage between classes and did not allow the lower classes to obtain property.
The establishment of these social rules in Iranian society marked the beginning of a political order and hierarchy that many viewed as oppressive and unjust.
Opposition to this rigid social hierarchy helped set the stage for the arrival of Islam, which had strong elements of social justice and equality as part of its message.

Islam and the Safavids

The arrival of Islam in Iran had a profound effect on Iranians and their history.
When Islam arrived, the Arabs conquered Iran between 637 and 651 CE.
The Islamic message of justice and fairness appealed to Iranians resenting Sassanian rule.
Islam shared common ideas with Zoroastrianism, such as monotheism and the idea of good and evil.
These similarities made it easier for Islam to take root in Iran.
By the tenth century, most Iranians had adopted Islam, but pre-Islamic achievements and culture continued to influence society.
Persian remained the primary language in Iran.

Who was the Prophet Mohammad?

According to the Islamic religion, in 610 CE, Mohammad had a revelation from the angel Gabriel in Mecca on the Arabian Peninsula.
He began to preach a message extolling the values of generosity, solidarity, and courage.
Mohammad saw himself as a successor of the Old and New Testaments prophets, including Abraham, Moses, and Jesus.
He called upon people to accept one eternal God who had created the universe.
Mohammad taught that greed was bad and that the poor had the right to share the wealth of the rich.
By his death in 632 CE, Mohammad established a religion with clear guidelines for personal conduct and social order, and a state governed by religious principles.
Following his death, armies of Mohammad’s followers conquered and brought others into the faith, spreading Islam from the Arabian peninsula to form a vast region in four hundred years.
About one hundred years after Mohammad’s death, a controversy arose about his successor.
Islam divided into two branches, Shi‘i and Sunni, who disagreed about who the rightful successor should be.
After the Arab conquest, foreigners ruled Iran until about 1500 CE.
Invasions from the east and the north brought vast destruction.
Although it was a period of political disarray, violence, and rule by foreigners, Persian culture, particularly poetry and art, continued to flourish.

How did the Safavid dynasty begin?

After centuries of political upheaval and foreign rule, a new dynasty emerged.
The Safavid Dynasty formed a powerful, highly organized state that endured for more than two hundred years.
The dynasty began when Isma‘il convinced many tribes that he was a descendant of Imam Ali.
Isma‘il and these tribes conquered the lands of Iran.
He declared himself the shah [king] and proclaimed Shi‘ism to be the mandatory faith of his kingdom.
During the Safavid Dynasty, Shi‘i Islam became an integral part of Iranian political life.
In turn, the Safavid rulers provided financial and political support that allowed Shi‘i Islam to grow and flourish in Iran.

How did the role of Islamic clergy increase in Safavid Iran?

The Safavid shahs sponsored Shi‘i clergy and established religious schools for educating theologians.
They also recruited Shi‘i theologians from neighboring Arab lands.
These theologians were known by the Arabic word ulama.
The Safavids gave power to the ulama, who played an increasingly important role in Iranian society.
Initially, they were financially dependent on the shah, but over time they became more independent as financial contributions and donations of property provided money for the Shi‘i clergy and their educational institutions.
By the end of the Safavid dynasty in 1722, most Iranians identified with Shi‘ism.

What was economic life like during the Safavid Dynasty?

The nomadic tribes, which had helped Shah Isma‘il (1502-1524) conquer lands, were also an obstacle to Isma‘ils ability to establish a stable, urban-based state.
To gain control, Isma‘il granted tribal leaders vast tracts of land in return for payments and taxes.
To collect taxes, the shah built an organized and effective government.
Villages were the center of rural life, with peasants working the land controlled by landlords in return for a share of the harvest.
The tribes raised cattle, sheep, goats, and camels.
During the Safavid era, trade between Iran and other countries grew.
The Safavids built roads, and exported silk and other textiles as well as ceramics to European countries.
To encourage trade, Safavid rulers tolerated the religions of foreigners.
Claiming large portions of land as the property of the crown, and systematically encouraging trade and production of crafts, Shah Abbas raised huge amounts of money in trade and taxes.
He used the revenues to finance a giant army to protect Iran against the neighboring Ottoman Empire and to establish the capital city of Isfahan.
The population of Isfahan was approximately 400,000 at the time of Abbas’s death.
At the same time, Abbas ruled with an iron hand and did not hesitate to eliminate those who he thought opposed him, including members of his own family.
The authority of the shah under the Safavids was absolute and largely unchecked.
The shahs who came after Abbas were not as effective.
The well-organized government of the Safavid state remained, but the standing army Isma‘il and Abbas had built withered.
In 1722, a tribal chief named Nadir Shah from what is today Afghanistan conquered Ifsahan, bringing the Safavid Dynasty to an end in 1736.

The Qajar Dynasty (1779-1925)

In 1779, Agha Mohammad Khan, a chieftain of the Qajar tribe from northeastern Iran, consolidated power and established the Qajar dynasty.

What role did the clergy have in Qajar Iran?

The Qajars did not have the religious or political prestige of the Safavids.
This situation enhanced the autonomy of the clergy, whose influence on Iranians exceeded that of the shah in certain respects.
Iranians increasingly attached themselves to a mujtahid: a member of the clergy who was recognized by other clergy as especially learned and able to render independent judgment about religion and law.
The Shi‘i religious establishment’s say on the policies of the shahs would become more and more important in Iranian political life.

What role did nomadic tribes play in Qajar Iran?

In the early nineteenth century, nomadic tribes made up between one third and one half of the population of Iran.
These various tribes governed themselves and often ruled the villages in their territory, and possessed the most powerful armed groups.
The shahs often appointed tribal leaders as regional leaders or governors.
The shahs also kept the power of these tribes in check by holding family members of tribal leaders as hostages, and by encouraging rivalries between the tribes.

What was daily life like under the Qajars?

Life in Qajar Iran was hierarchical and corrupt.
Peasants and the poorer classes had no protection from exploitation and land seizure.
Many poorer Iranians came to resent the shah.
During the Qajar Dynasty, taxes went to providing for a life of luxury for the shah.
Little money went to things that might improve the lives of average Iranians, such as building roads or railways, or maintaining an army that would protect Iran.
Iran was stuck in a system of patronage, where power and positions could be purchased from the shah.
The economy lacked the infrastructure to grow.
Economic stagnation under the Qajars made Iran susceptible to interventions by powerful countries seeking to expand their wealth.
During the nineteenth century, Britain and Russia began to play an active role in Iran.

How did Russia and Britain compete over Iran?

During the nineteenth century, both the British and Russian Empires sought to extend their influence into Iran.
Russia was anxious to expand southward and obtain warm water ports on the Persian Gulf.
Britain saw Russia’s ambitions as a threat to the British colony of India.
Iran fought two wars with Russia in 1813 and 1828, and lost a great deal of its territory in the north.
After the 1828 war, Russia forced Iran to accept the Treaty of Turkomanchai, which placed the Iranian government in heavy financial debt to Russia.
The treaty also gave Russian merchants special privileges and favorable tariff rates in Iran (tariffs are taxes on imported goods).
Alarmed by Russia’s expansion into Iranian territory, Britain informed the Russian government that it would not tolerate further Russian expansion in Iran.
Neither country wanted to fight a war over Iran, so they agreed to let Iran serve as a buffer state between their empires.
Nevertheless, both empires competed for influence in the Iranian government.
Britain negotiated a treaty of its own in 1857, which gave British merchants rights similar to those of the Russians.
The powerful European economies began to export raw materials from Iran, while Iran imported manufactured goods from Europe.

What were concessions?

During the reign of Nasir al-Din Shah (1848-1896), British and Russian merchants sought to participate directly in Iran’s economy.
The shah’s desire for money to finance his lifestyle as well as Iran’s development led him to grant “concessions” to foreign merchants.
The concessions gave foreigners the right to develop parts of Iran’s economy.
In 1863, for instance, the shah allowed a British company to build the telegraph system in Iran.
He gave Russian companies other concessions to balance what he had given to the British.
In 1872, the shah awarded a massive concession to a British baron, Julius de Reuter.
Reuter was going to build railways, dams, and canals, and develop vast agricultural and mining areas in return for being able to operate them as monopolies.
British and Russian squabbles over these concessions slowed the development of infrastructure that Iran needed to modernize its economy.
The consequences were significant. For example, by the dawn of the twentieth century, Iran had only twenty miles of railroads.
Foreigners would continue to affect Iran throughout the twentieth century.
This mistrust played a powerful role in Iranian politics.

Why did the shah’s policies anger Iranians?

Although these concessions benefitted the Russians and the British and made the shah wealthy, his economic policies did little to develop the economy of Iran.
Economic hardship and suffering, the giving of Iran’s resources to foreigners, and pervasive inefficiency and corruption heightened public anger and resentment among Iranians.
Some Iranians who had contact with Europeans or who had studied abroad worried that they had fallen behind Europe, which was changing rapidly because of the Industrial Revolution, colonialism, and the Enlightenment.
For these Iranians, the weak and ineffective Qajar government stood in stark contrast.
Some Iranians who had a chance to study in Europe, the neighboring Ottoman Empire, or in a few new schools in Iran, viewed Western science and technology as the key to building Iranian national power and wealth.
Western liberal political ideas like democracy, representative government, and civil legal codes also influenced Iranian intellectuals.
The intellectuals promoted their ideas and tried to initiate reforms.
In response, Nasir al-Din Shah resorted to repressive measures.

What was the Tobacco Protest?

In 1890, the shah granted a British company the exclusive right to produce, sell, and export tobacco.
Iranians wondered why this right should be taken out of the hands of Iranians and given to foreigners as a monopoly.
Iranians from all areas of society were outraged.
Men and women participated in widespread protests against the concession and against the shah.
The ulama supported the boycott because they believed that foreign encroachment presented a danger to Shi‘i Islam.
The cooperation of these two groups to end an injustice created a powerful political alliance, and rallied Iranians to the cause.
After twenty-two days, the protests forced the shah to rescind the concession.

Why was the D’Arcy oil concession important?

In 1901, Mozaffar al-Din Shah granted another concession which would have a far-reaching effect on Iran.
In exchange for 16 percent of the profits, the shah awarded an Englishman named William D’Arcy the right to the oil in most of Iran.
When large quantities of oil were discovered in the coming years, the British government stepped in and became the largest shareholder in the company.

The Constitutional Revolution of 1906-1911

Dissatisfaction among Iranians increased with the D’Arcy oil concession.
Some Iranian intellectuals, merchants, and clergy formed secret societies where they discussed their unhappiness with the shah and with the status of Iran.
Members of the merchant class hoped for an economic system that would operate more fairly and efficiently.
Some members of the clergy hoped to strengthen the role Shi‘i Islam played in Iranian government and society.
While intellectuals brought ideas about political reform back with them from abroad, it was the clergy who mobilized and communicated to the masses.

How did protests lead to a parliament and constitution?

In 1905, protests against the shah broke into the open.
Public demands for change led to the Constitutional Revolution.
Protestors demanded a constitution and a parliament (the Persian word for parliament is Majlis).
In 1906, Iran’s first elections for the parliament were held.
One of the first tasks of the Majlis was to write a constitution.

How did the constitution change Iranian politics?

The constitution introduced new legal and political practices and redistributed authority in Iran.
The elected Majlis received authority over treaties, loans, budgets, and concessions.
It was also given the power to appoint and dismiss cabinet ministers.
In addition, the constitution defined the rights of Iranian citizens.
The new constitution changed not only the laws of Iran but also the way that Iranians thought about government.
Iranians had become citizens, not just subjects of the monarch.
Members of the Majlis debated each other in public and had to answer to their constituents.
The constitution designated Twelver Shi‘ism as the official religion of Iran and gave a committee of learned clerics the power to review legislation to ensure that it did not contradict the fundamental principles of Shi‘ism.
The ulama, which had rallied support for the constitution, ensured that the new Iranian government’s most important goal would be to protect and support Shi‘i Islamic features of Iranian society.
there were disagreements among and within the factions.
For example, some members of the ulama did not support freedom of the press or freedom of speech, which they thought could undermine religion.
They also argued that non-Muslims should not be treated as the equals of Muslims before the law.

How did Britain’s and Russia’s roles in Iran help the shah weaken the new constitution?

The new shah, Muhammad Ali, was not ready to relinquish all the power of the monarchy so easily.
Domestic economic problems and the continuing role of Britain and Russia created public discontent and helped him challenge the new constitutional form of government.
In 1907, Russia and Britain signed a treaty in which they agreed to settle their differences in the region.
Muhammad Ali Shah argued that the new constitutional form of government was even less successful than the old government in protecting Iran from foreign interference.
High prices and inflation contributed to public dissatisfaction.
The Russians encouraged the shah to order the army to attack the Majlis’s building in Tehran.
The shah also had the leaders of the constitutional movement arrested and then executed.
The coalition of clergy, intellectuals, and merchants, which had united against the shah in 1906, split over disagreements about the relationship between the state and religion and what kinds of social and political reforms should be prioritized.
With Iranian society divided and the central government weakened, fighting broke out and tribal groups again asserted their power.
In 1909, pro-constitution tribesmen and militias entered Tehran, deposed the shah, and replaced him with his nine-year-old son.

How did Russia and Britain respond to war in Iran?

In 1911, Britain landed troops in the south to protect the newly discovered oil fields there.
Russian troops pushed into the north and threatened to occupy Tehran unless the government dismissed a recently appointed American financial advisor whose actions threatened Russian and British interests.
When the Majlis refused, the Iranian cabinet dissolved the Majlis and gave in to Russian and British demands.
Britain and Russia controlled their sections of the country and dealt with tribal leaders in these areas, not the central government in Tehran.
The occupation heightened resentment of the British and the Russians whom Iranians saw as helping the shah end the Constitutional Revolution.
Elections for the Majlis did not take place again until 1914.

How did World War I affect Iran?

When World War I began in 1914, Iran remained neutral.
Nevertheless, the war had a devastating impact on Iran.
Iran’s economy shrunk by 25 percent
Parts of Iran were occupied by the Ottoman Empire, Russia, and Great Britain.
The presence of these armies severely limited any authority that the shah or the government in Tehran could exert.
Iran considered itself an unwilling victim of the war, and petitioned for redress at the Paris Peace Conference at the end of the war.
The Russian Revolution of 1917 led to the withdrawal of Russian troops from the north of Iran.
Britain then became the dominant foreign power in Iran.
During World War I, Iranian oil had helped fuel the British fleet.
After the war, Britain took steps to ensure it would maintain access to oil and that Iran would serve as a buffer against now-socialist Russia.
The Iranian prime minister decided to embrace British involvement in Iran with the hope that it would provide the financial and institutional support that Iran needed to strengthen the central government.
He negotiated the Anglo-Persian Agreement of 1919, which would have made Iran a British protectorate.
Ultimately, the Majlis refused to ratify the agreement.

Reza Shah (1925-1941) Pahlavi Dynasty

In 1921, Reza Khan, tired of the weak Iranian government, took three thousand soldiers into Tehran, arrested some leading politicians, and asked the shah to appoint a new prime minister.
By 1923 Reza Khan had become prime minister himself, expanded the armed forces, and purchased weapons.
With a strengthened military, he reduced the power of the tribes and asserted control over the country.
In 1925, the Majlis voted to abolish the Qajar dynasty and appointed him the shah.
He announced that his family’s ruling name would be Pahlavi, after the name for the Persian language spoken before the Muslim conquest of Iran.

What did Reza Shah hope to change in Iran?

Reza Shah hoped to build Iran into a modern state and modern economy like the western states of Europe.
He worked to strengthen the role of the central government and to concentrate power in his hands.
Reza Shah ordered the construction of new roads, railroads, factories, hospitals, and ports.
He expanded public education at all levels for boys and for girls.
He sent the army into tribal areas, limited the tribes’ movements, and forced them to disarm.
Tribal rebellions were ruthlessly put down.
These policies impoverished and weakened the tribes.
One of the results of Reza Shah’s policies was that Iranians moved from rural areas into cities.

How did Reza Shah try to reduce the power of the ulama?

Some of the changes Reza Shah mandated brought him into conflict with the ulama.
Reza Shah believed that the clergy’s power prevented Iran’s modernization.
In fact, many of the policies he enacted were designed to weaken the power of the clergy and make Iran a more secular society.
For example, he took funds from the money-generating land endowments that the Shi‘i clergy had held since the Safavid era.
His expansion of public education also reduced the ulama’s role in education.
A central component of Reza Shah’s reforms included significant changes in the legal system.
During the 1920s and 1930s, Iran adopted a legal system similar to that of France.
New laws required men to dress in a western style and prohibited hijab (veiling) for women, which Reza Shah saw as standing in the way of modernizing Iran.
His policy was to unveil women with force.
Although many Iranians embraced Reza Shah’s plans for modernization of Iran, his efforts to reduce the role of Islam in public life contributed significantly to his unpopularity with ordinary Iranians.
He tolerated no dissent and enforced his policies with violence, terror, and fear.
Opposition leaders were killed, arrested, or forced into exile.
In addition, Reza Shah suspended elections and hand picked members of the Majlis, who in turn appointed a cabinet and prime minister.

How did the lives of women change during the reign of Reza Shah?

The lives of women changed during the reign of Reza Shah.
The Shah encouraged the education of women, though three times as many boys as girls received a formal education.
Although women did not have political, social, or economic equality, women did begin to have more opportunities for work.
Women were admitted to the University of Tehran.
Most of these changes only affected women in middle and upper classes and did little to change traditional assumptions about the subjugation of women to men.

How did Reza Shah attempt to limit the influence of foreign powers in Iran?

Reza Shah intended to create a strong national identity in Iran.
He had marginalized the role of the tribes and oppressed different ethnic groups, including Kurds and Arabs.
To build national pride, the shah cited periods of national greatness prior to the arrival of Islam in his speeches.
He extolled the achievements of the ancient Persian kings, Cyrus and Darius, and the Safavid Dynasty.
Reza Shah also changed the name of the country used in foreign communications from Persia, the name that foreign powers used, to Iran, the name used by Iranians themselves.
He even ordered that foreign mail that included the word Persia on it be returned to its sender.
Reza Shah attempted to reduce the role of foreign powers in Iran—particularly Great Britain.
There were more workers in the British owned oil fields than in all other Iranian industries combined, although very few Iranians held important technical and administrative jobs.

How did the German presence in Iran led to the shah’s abdication?

During the 1930s, the shah allowed Nazi Germany to play an increasing role in Iran.
Between 1939 and 1941, Germany became Iran’s leading trading partner.
Reza Shah had a deep distrust of the British and hoped a German presence would balance the power of the British.
Hundreds of German agents operated in Iran, using it as a base of operations against British interests throughout the region during World War II.
With the Nazi invasion of the Soviet Union in June 1941, Allied leaders worried that Nazi Germany would use Iran as a base for military operations against the Soviet Union.
The British and Soviet governments sent a note to Reza Shah demanding the expulsion of all Germans from Iran.
The shah did not give in, and in late August 1941, Soviet forces moved in from the north, British from the south.
Under pressure from the Allies, Reza Shah relinquished the throne to his son, Mohammad Reza, in September 1941.

How did the occupation of Iran during World War II affect Iran’s politics?

During World War II, neither Mohammad Reza Shah nor the Majlis had final control over policy in Iran.
The occupation of Iran reduced the power of the central government and led to the rise of factions in Iranian political life, each vying for influence.
With a weak shah and government, conditions were right for the growth of competing political groups and ideas.
Newspapers flourished and called for economic and political change.
New political parties began to emerge, including the “Tudeh” (masses), an anti-monarchist party. Initially moderate and liberal, the Tudeh party increasingly came to reflect the policies and wishes of the Soviet Union.
It grew strongest in the north, the Soviet zone in Iran.
In addition, another emerging world power began to gain a foothold in Iran.

How did World War II affect Iran’s economy?

The occupation and the presence of foreign troops strained the economy of Iran.
The wartime allies commandeered use of Iran’s transportation facilities like the railroad to send supplies to the Soviet Union.
This made internal trade in Iran more difficult.
Prices rose for basic goods, including food supplies.
Many Iranians suffered from famine after a bad harvest in 1942.

Part II: Mossadegh to Khomeini

At the end of the Second World War, Iran stood at a crossroads.
Britain, the Soviet Union, and the United States had agreed to withdraw their occupation forces six months after the end of the war.
Each would have to reassess its own position and role in Iran.
The question of how Iranians would govern their country assumed new importance.
The constitution of 1906 remained in place, and with the departure of the dictatorial Reza Shah, the Majlis and prime minister assumed increasingly important roles in Iranian politics.

Why did Iran become more open politically during the occupation?

The young and inexperienced Mohammad Reza Shah was unable to exercise the political power that his father had.
A free press flourished.
With elections for the Majlis every two years, and the introduction of new political ideas, Iran began to develop a more democratic political process.

How did the shah attempt to strengthen his power?

The shah put pressure on the Majlis to accept a new law that would allow him to dissolve the Majlis and then call for new elections.
He also demanded and received the right to appoint the prime minister, previously the prerogative of the Majlis.
Resentment of foreign powers unite Iranians
Basic economic issues were a concern.
Those in the upper classes wished for a government that would be more efficient, free from foreign control, and that would promote economic growth and stability.
University graduates, frustrated by their lack of opportunities for employment that utilized their education, joined and led social protest movements.
The ulama pushed for a reassertion of Islamic law.

Mohammad Mossadegh and Oil Nationalization

High on the list were the concessions to foreigners.
The British-owned Anglo-Iranian Oil Company (AIOC) became a focus of resentment and represented to Iranians the exploitation and weakness of Iran.
The British government stepped in and became the majority shareholder of the company.
The terms of the arrangements with Iran were extremely favorable for the British.
The Iranian government did not profit nearly as much as the British government.
Iranians received nothing for AIOC’s profitable refining and distribution operations.
Iranians began to push for nationalization.

What were the results of negotiations between the AIOC and the Iranian government?

They offered to train more Iranians for high-level positions and promised that royalty payments would not drop below £4 million pounds per year.

Why did the shah want to support the Supplemental Agreement with Britain?

He knew he owed his position to the British and calculated that he could strengthen his power by supporting them in their quest for a modified agreement, even though it was a deal tilted in favor of the British.

Why did the Majlis refuse to support the Supplemental Agreement with Britain?

Members of the Majlis were aware that public opinion was strongly against accepting the terms dictated by the British, yet they were also afraid to anger the shah.
Outraged by the shah’s attempts to hijack the vote, a prominent politician named Mohammad Mossadegh led protests in Tehran in October 1949 for new and fair elections for the Majlis.
Mossadegh formed a coalition of political parties into the “National Front,” which wanted to free Iran from foreign influence.
The National Front included secular groups and members of the ulama, led by the Ayatollah Kashani.
The pro-Soviet Tudeh party also supported the goals of the National Front.
Though these groups held dramatically different political viewpoints, they were unified by the desire to nationalize Iran’s oil resources, which meant returning control of these resources to Iran.

How did the shah respond to the demands of the National Front?

Mossadegh and the National Front called for the end of the oil concession to the British.
In February 1951, Mossadegh proposed full nationalization of the AIOC.
This had widespread appeal throughout Iran.
Iranians requested that the shah appoint Mossadegh as the new prime minister.
Under intense domestic political pressure, the shah appointed Mossadegh as prime minister and signed the nationalization bill.

How did Britain respond to the nationalization?

They offered to train more Iranians for high-level positions and promised that royalty payments would not drop below £4 million pounds per year.
Britain increased its military forces in the region, filed a complaint with the International Court of Justice, and asked the United Nations (UN) Security Council to intervene.
Britain led an international boycott of Iranian oil.
British intelligence officials in Iran began working behind the scenes to engineer a coup against Mossadegh.
In October 1952, Mossadegh broke diplomatic relations with Britain and expelled all British officials from Iran.

What other reforms did Mossadegh attempt to enact in Iran?

Mohammad Mossadegh was a strong nationalist who hoped to rid Iran of what he saw as crippling and parasitic foreign influences.
He was a strong advocate of the rule of law and for the constitution.
He also worked to reduce the power of the shah and the size of the army.
In 1952, he convinced the Majlis to take control of the army out of the hands of the shah and place it under the control of the Majlis and prime minister.
He hoped to enact land reforms, which would reduce the power of wealthy landowners and allow peasants to own their own land.

What role did the United States play in Iran?

The Truman administration worried that Britain’s failure to compromise, and any efforts to get rid of Mossadegh might result in Iran turning to the Soviets.

How did the British and the Americans overthrow Mossadegh?

The U.S. emphasis on compromise changed with the election of President Dwight D. Eisenhower (1953-1961).
American and British officials saw the shah as key to their goals in Iran.
Both countries wanted an oil-producing Iran firmly aligned against the Soviet Union.
The plan was to convince the Iranian people that Mossadegh was corrupt, an enemy of Islam, and pro-communist.
Although the shah fled to Rome when it appeared that the coup might fail, the CIA convinced its Iranian allies to press on.
On August 19, 1953, they captured Mohammad Mossadegh.
General Fazlollah Zahedi announced that the shah had appointed him as prime minister.

Royal Dictatorship

Anxious to avoid a repeat of the threats to his power and throne, the shah took steps to ensure that these events would not occur again.
More experienced than he was when he took the throne in 1941, the shah was also anxious to modernize Iran and make it a more powerful country.
To secure the support of Britain and the United States to which he owed his position, the shah moved quickly to settle the oil dispute that had sparked Mossadegh’s rise to power.
The shah disbanded the National Front and tried and imprisoned its leaders, including Mohammad Mossadegh.
The shah also banned the pro-Soviet Tudeh party.
The shah’s actions severely limited the public expression of political ideas and effective public opposition.
During the 1950s, the United States provided more than $500 million in military aid to the shah.
With an increasingly powerful military and SAVAK at his disposal, the shah had more power in his hands.